As an employer of a domestic worker you have the same legal responsibility to provide a safe working environment for your employee as any commercial employer. You also need to ensure that you have sufficient insurance in place to meet the requirements of the Employers’ Liability (Compulsory Insurance) Act 1969. This insurance is to cover you against a claim for compensation from an employee past or present for illness or injury sustained as a result of their work or working environment and it is a legal requirement that you have cover for this of at least £5,000,000. The fine for not having this in place is £2500 per day that cover is not in place. We have found that most policies tend to be for at least £10,000,000 though.
Some payroll bureaux will attempt to sell you Employers’ Liability Insurance without giving you the correct guidance on other options available to you. NannyPaye recommends firstly checking your current home insurance policy as this will usually provide the legal minimum insurance cover you require.
You should familiarise yourself with the requirements of the Employers’ Liability (Compulsory Insurance) Act 1969 and independently confirm your insurer covers you to fully meet it including both illness and injury.
NannyPaye does not provide insurance services or guidance on specific policies so we cannot confirm for you if your household insurance policy meets the requirements of the Employers’ Liability (Compulsory Insurance) Act 1969.
Feedback from our clients is that they mostly find their household insurance policy covers them to the level required by the Act. If your policy does not then we have provided a list below of companies that you may wish to contact for this, we are not affiliated with any of these companies, nor are we endorsing or recommending them, this list is merely provided to point you in the right direction.
Policies tend to cost around £100.00 a year and will generally offer more than your standard household insurer including better guidance on the requirements to display your certificate and often a larger indemnity. Experience tells us that the large majority of our clients after investigation are happy with the coverage provided for free by their household insurers whilst a small amount prefers the peace of mind of taking out a specific policy.
We are as yet unaware of any client ever receiving a claim from an employee that would be covered by Employers’ Liability Insurance.
Standalone policies that we have come across: